E2E Networks, a provider of cloud computing services, saw its shares rise 10% in today’s session (February 1), reaching the day’s high of ₹2,334 apiece, after Union Finance Minister Nirmala Sitharaman announced a major boost to data centres.
In her Budget speech on February 1, Sitharaman said, “Recognizing the need to enable critical infrastructure and boost investment in data centres, I propose to provide a tax holiday till 2047 to any foreign company that provides cloud services to customers globally by using data center services from India. It will, however, need to provide services to Indian customers through an Indian reseller entity.”
“I also propose to provide a safe harbor of 15 percent on cost in case the company providing data center services from India is a related entity,” she further stated.
India is rapidly building a robust AI computing and semiconductor infrastructure to support its growing digital economy. With the approval of the IndiaAI Mission in 2024, the government allocated ₹10,300 crore over five years to strengthen AI capabilities.
A key focus of this mission is the development of a high-end common computing facility equipped with 18,693 Graphics Processing Units (GPUs), making it one of the most extensive AI compute infrastructures globally.
